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TVA to Raise TVA Power Generation Fuel Charge

TVA to Raise TVA Power Generation Fuel Charge

Monday | July 18, 2022
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TVA will increase the Total Monthly Fuel Cost (TMFC) cost on August bills by almost a full penny per kilowatt hour (kWh), from $.04016/kWh in July to $.04838 kWh in August. July’s TMFC rose by over a penny/kWh from June’s monthly fuel cost ($.02848/kWh).

For a member who uses about 1,500 kWh of energy in the summer (kWh usage is included in the left-hand column of NGEMC electricity bills) this increase will add around $15 to August bills. This estimate does not account for any increase in energy usage, so the total increase on August bills could be higher if more energy is consumed.  

The TMFC is itemized on NGEMC bills as the “TVA Power Generation Fuel Charge.” This is a pass-through charge set by TVA each month. 100% of this charge goes to TVA and is used to cover the fluctuating cost of the fuel sources used to generate electricity at TVA power plants. The fuel charge has almost doubled over the last three months. NGEMC does not retain any portion of the TMFC and is not involved in calculating the charge. 

NGEMC bills were amended in 2018 to break out the Energy Charge, TVA Power Generation Fuel Charge, and the System Support Fee into an itemized bill for greater transparency in how utility bills are calculated. Prior to 2018, these three charges were lumped together on bills under “Energy Charge” and were only itemized on NGEMCs rate sheets. Rate sheets are posted monthly.

Please Note: The system support fee covers regular maintenance, engineering and operation of the distribution lines, substations, metering, cybersecurity, physical security, and customer support. Despite unprecedented increases in the price of the associated distribution equipment, NGEMC’s system support fee has remained the same for almost 4 years. Find detailed explanations of all charges on your bill. 

NGEMC serves portion of seven counties throughout Northwest Georgia and is contractually required to purchase 100% of its power from TVA.

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